Originally Posted by
tuna_hp
Its an inefficient pricing trap. People know that with their $500 economy seat they have an X% chance of being upgraded, and they would be willing to pay $1000 to get the seat guaranteed, but X is too high to justify them paying $1500 to $2000 that first class is to everyone else.
That isn't a true premise.
The economy seat is $500
The full class business is $1500
The 'discount' business you propose is $1000.
But the company will still only pay $500. Thus $500 + good chance of upgrade is
far more valuable to those elite passengers flying on the company dollar (where economy is mandated at least for short routes - and that is a huge number of companies these days) than the 'cheaper' business fare, which would cost them $500 out of pocket (assuming they can still get the company to pay $500 for economy, even if they fly business, which again, not all companies allow, nor do all airlines allow changes to flight class without penalty). Buy economy (on company dollar) and fly business, say 50% of the time (I think 85% is far too high) for $0 cost to the individual, or buy economy (on company dollar) and fly business 100% of the time, but at a cost of $500 each and every time to the individual which, if they fly 3 times a week, is in the region of $75k. I know which option I would go with!